VisEra Technologies Company Ltd. (TWSE:6789) Analysts Are Cutting Their Estimates: Here's What You Need To Know

VisEra Technologies Company Ltd. (TWSE:6789) just released its quarterly report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.6% to hit NT$2.8b. Statutory earnings per share (EPS) came in at NT$1.81, some 2.3% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for VisEra Technologies

Taking into account the latest results, the most recent consensus for VisEra Technologies from two analysts is for revenues of NT$11.0b in 2025. If met, it would imply a huge 20% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 92% to NT$7.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$12.5b and earnings per share (EPS) of NT$8.22 in 2025. Indeed, we can see that the analysts are a lot more bearish about VisEra Technologies' prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 11% to NT$328, with the weaker earnings outlook clearly leading valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the VisEra Technologies' past performance and to peers in the same industry. It's clear from the latest estimates that VisEra Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that VisEra Technologies is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.